Correlation Between PT Bank and ZoomerMedia
Can any of the company-specific risk be diversified away by investing in both PT Bank and ZoomerMedia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Bank and ZoomerMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and ZoomerMedia Limited, you can compare the effects of market volatilities on PT Bank and ZoomerMedia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Bank with a short position of ZoomerMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and ZoomerMedia.
Diversification Opportunities for PT Bank and ZoomerMedia
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and ZoomerMedia is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and ZoomerMedia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZoomerMedia Limited and PT Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Bank Rakyat are associated (or correlated) with ZoomerMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZoomerMedia Limited has no effect on the direction of PT Bank i.e., PT Bank and ZoomerMedia go up and down completely randomly.
Pair Corralation between PT Bank and ZoomerMedia
Assuming the 90 days horizon PT Bank is expected to generate 50.17 times less return on investment than ZoomerMedia. But when comparing it to its historical volatility, PT Bank Rakyat is 15.56 times less risky than ZoomerMedia. It trades about 0.03 of its potential returns per unit of risk. ZoomerMedia Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.30 in ZoomerMedia Limited on September 1, 2024 and sell it today you would earn a total of 4.70 from holding ZoomerMedia Limited or generate 1566.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. ZoomerMedia Limited
Performance |
| Timeline |
| PT Bank Rakyat |
| ZoomerMedia Limited |
PT Bank and ZoomerMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and ZoomerMedia
The main advantage of trading using opposite PT Bank and ZoomerMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, ZoomerMedia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ZoomerMedia will offset losses from the drop in ZoomerMedia's long position.| PT Bank vs. Piraeus Bank SA | PT Bank vs. Turkiye Garanti Bankasi | PT Bank vs. Delhi Bank Corp | PT Bank vs. Uwharrie Capital Corp |
| ZoomerMedia vs. Guild Esports Plc | ZoomerMedia vs. Celtic plc | ZoomerMedia vs. Network Media Group | ZoomerMedia vs. OverActive Media Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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